Wall Street Banks Back Elizabeth Warren On Crypto Clampdown: Report

A group of Wall Street lenders, the Bank Policy Institute (BPI), has thrown its support behind U.S. Senator Elizabeth Warren on her recently reintroduced legislation known as the Digital Asset Anti-Money Laundering Act.

In recent days, the U.S. Congress has occupied the headlines with the introduction of several bills aimed at regulating the U.S. crypto industry.

Elizabeth Warren And The BPI Finally Agree On Something 

According to a report by Bloomberg on July 28, the BPI, which functions as a research and advocacy banking group, is backing Warren on this bill which aims to enforce a higher level of compliance in the U.S. crypto space in regard to anti-money laundering and counter-terrorism rules. 

Bloomberg also noted the existing tension between the BPI and Elizabeth Warren, with the Massachusetts Senator often criticizing members of the trade union. 

However, it appears both parties do agree on the need for stringent regulations in preventing the misuse of cryptocurrency with the larger goal of protecting the U.S. financial system.

The BPI said in a statement: 

The existing anti-money laundering and Bank Secrecy Act framework must account for digital assets, and we look forward to engaging in this process to defend our nation’s financial system against illicit finance in all its forms.

What Does The Digital Asset Anti-Money Laundering Act Entail?

The Digital Asset Anti-Money Laundering Act was reintroduced on Friday as a bipartisan bill sponsored by Warren alongside fellow Democrat Joe Manchin and Republicans Roger Marshall and Lindsey Graham.

In a press release, Warren expressed that cryptocurrency had become a payment medium used by various sets of criminals, stating that this legislation presented the “toughest” means of cracking down on these misuses and equipping regulators with the tools to block the access of bad actors to these assets.

Upon passing, the Digital Asset Anti-Money Laundering Act would mandate digital asset wallet providers, miners, validators, and other network users that validate or enable crypto transactions to undertake the Bank Secrecy Act, which includes enforcing Know-Your-Customer policies. 

In addition, among others, this bill will look to oversee the actions of unhosted wallets by mandating banks and money-serving businesses to keep a record of their customer identities and report “certain digital asset transactions” conducted by these wallets. 

In other news, the U.S. Congress continues to ramp up efforts as it aims to create a functional regulatory framework for the crypto industry.

In the last week alone, the U.S. House Financial Services Committee cleared three significant pieces of crypto legislation, namely the Clarity for Payments Stablecoin bill, the Financial Innovation and Technology for the 21st Century Act, and the Blockchain Regulatory Certainty Act.